Shopping without borders Cross-border shopping by Zimbabweans in South Africa’s border town of Musina Nedson Pophiwa, HSRC-DGSD Programme/ PhD UKZN Economic History 10 November 2015 1
Definition of CBS • Cross-border shopping is categorised as a form of “out-shopping” which occurs when consumers travel outside their local area, cross a national boundary into an adjacent country, to shop (Kuncharin and Mohamed 2013). • Due to advancements in technology this may involve purchases being made through distance shopping (internet, phone, etc.) from sales representatives in another country (Spierings and van der Velde 2008; 498). • A localised definition in the South African context can be found in one local study which defines cross-border shoppers as “foreigners who come to South Africa for short periods of time, with shopping as their main purpose of travel… Their activities range from the purchase of low-end consumer goods for use by friends and family in their home countries to entrepreneurial buying of crafted and manufactured goods for resale in their home countries and South Africa.” (Strategic Business Partnerships 2006) 2
ICBT in South Africa Informal cross-border traders can also be cross-border shoppers as this categorisation in the case of South Africa by Sally Peberdy (2002: 36) shows; i. Traders who travel to South Africa for short periods (1-4 days) to buy goods (usually from formal sector retail and retail and wholesale outlets and farms) to take back to their home country to sell. These goods are sold in markets, on the street, and to formal sector retail outlets and to individuals. This category of trader appears to be the most numerous and can be called “shoppers”; ii. Traders who travel to South Africa for longer periods (1 week to 2 months) who carry goods to sell in informal and retail markets. The profits are then invested in buying goods which are then taken back to their home countries for sale in informal and formal sector markets; iii. Traders who travel across three or more countries including South Africa, buying and selling as they go; iv. A seemingly small category of traders who only bring goods from their home country to sell in South Africa without taking goods out for sale in their home country; and v. South Africans who take goods to sell in other Southern African countries in markets, on the street and to formal sector retail outlets (Ibid) 3
Research Context Cross-border shopping (CBS) is a phenomenon largely studied by tax • experts, economists, tourism experts and related disciplines seeking to understand trends and patterns that shape this type of out-shopping (Dascher and Haupt 2008; Leal, et al 2010; Subramaniam 2008 ). • CBS is prominent among various European borders e.g. Danes flocking to Germany to buy alcoholic beverages more cheaply (Bygvra 1998; Bygvra 2009) and Norwegian consumers purchasing goods highly taxed in their country – notably alcohol and tobacco – in neighbouring Sweden (Beaty et al 2009; Karlsson and Lindgren, 2010). • Mexicans contribute US$3 billion annually and travel hundreds of miles to buy products that are cheaper or only available in the United States (Sullivan et al 2012; 599). Americans shop for cheaper medicines in Mexico • Cross-border shopping is reported as having made Yugoslavs exceptional in comparison with people living in other communist countries because “Yugoslavs could pride themselves on their first-hand experience and knowledge of all things Western—from the best places to buy long-playing records (LPs) in London to the prices of cappuccino in Venice, ways to hail a taxi in New York, or the best times to go shopping at flea markets in Paris” (Hozic 2012: 617). 4
Research Context • CBS has led to the development of boom towns between Angola and Namibia where not only the local entrepreneurs but also a significant number of Chinese traders are profiting (Dobler 2008; Dobler 2009; Zeller 2010; Rodrigues 2010). • Basotho cross daily into border towns astride the Lesotho-South Africa border to shop, conduct business and utilise social services there (Viljoen and Wentzel 2007; Coplan 2001). • Mozambican cross-border trade in SA is also prominent (Peberdy 2001) and towns like Nelspruit have experienced boom due to CBS • Zimbabwean informal cross-border traders have become a prominent feature in regional trade in SADC (Muzvidziwa 2001; Kachere 2011; Mutopo 2010; Muzvidziwa 2012) • Zimbabweans crossing the border to shop and consume in Musina and other South African towns have drawn media attention as well as civil society and few scholarly studies 5
Research Questions 1. What factors led to the surge in cross-border shopping by Zimbabweans in South Africa? 2. What is the nature and extent of Zimbabwean cross-border shopping in Musina? 3. What strategies have shoppers employed to navigate risks which impact negatively on their cross-border shopping activities? 6
Is Zimbabwean CBS a negative thing? • The milk in my fridge has a sign on it boasting that it is "Proudly South African." The cheese, custard, butter, frozen vegetables, fruit juice and mayonnaise have the same sign. The cereals in the cupboard have labels announcing that they are "Proudly South African" so does the rice, coffee and biscuits. It's the same in the pantry cupboard where the tins, soup, noodles, washing powder and cleaning products all say ‘Made in South Africa.' This is how Zimbabwe greets 2015. Cathy Buckle, Zimbabwean writer and blogger • “How can we, as a nation, import water, toothpicks, plastics, to mention but a few? Surely, we can do better than this,” Mike Bimha, Minister of Industry and Commerce, Zimbabwe • “All sectors of business are thriving at the moment. From the informal street vendors to the most sophisticated, businesses are doing extremely well." Chairperson of the Musina Chamber of Commerce, Jason Rana 7
Do they shop just for survival? CBS is not just a survival strategy for Zimbabweans but consumerism is an underlying • aspect to it It is not just the poor who shop in South Africa or elsewhere in the world. The ruling elite • are often reported as splurging on shopping in other countries. • In a spat on social media site Twitter, former South African reserve bank governor Tito Mboweni tweeted about the hypocircy of Prof Jonathan Moyo, a staunch ZANU PF MP "Jonathan Moyo irritates me. Writes fairy tales‚ shops in SA for basic things and talks such rubbish whilst his people suffer. Prof my foot!” • Western media labelled Grace Mugabe, “Gucci Grace”, “First Shopper” for her lavish lifestyle of shopping sprees when her family travelled abroad especially to Europe. • In 2014 the ruling party ZANU PF aligned Members of Parliament together with opposition MDC MPs made news when they were “stranded” after missing their plane during a shopping trip in China. • Even poor cross-border shoppers have consumerist motives in their shopping e.g. – For a long time, I never understood why struggling Zimbabwean women would go to Botswana or South Africa with doilies, sell them there and then, among other things, use their hard won foreign currency, to buy bottles of whisky which they would simply display in their cabinets. Many of these women and their families do not drink whisky. My own mother bought a punch-set in South Africa which, to my knowledge, has never been used. In some sense, the consumption patterns are an expression of what the women want to be and what narrative stories they wanted to live. (Kaulemu n.d: 21) 8
Methods 1. Literature review : I consulted vast sources of literature both secondary sources and primary archival data (Pretoria Archives), reports on cross-border commerce and tourism statistics. 2. Semi-structured interviews : Conducted 43 so far with shoppers, transport operators, shop assistants in Musina and at the border post. Shoppers were intercepted after shopping or in their places of rest or temporary accommodation. 9
Additional Data Collection Methods • Fieldwork notes/diary: I kept a research diary where I noted down all the events and observations that I was making. All informal conversations were recorded in that diary and names of places, and many other pointers that would keep me informed about the research. • Participant observation : Very useful method which I realised was the only way to gain access into insightful information on issues that respondents would not easily share with me. I observed shoppers arriving in Musina, the routes they took and followed them to the CBD and observed the shops they entered and recorded their purchases etc. 10
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